Economic Social Factors and the Effect of Criminality in North Sumatera

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Economic Social Factors and the Effect of Criminality in North Sumatera Advances in Economics, Business and Management Research (AEBMR), volume 46 1st Economics and Business International Conference 2017 (EBIC 2017) Economic Social Factors And The Effect of Criminality In North Sumatera Raina Linda Sari Wahyu Sugeng Imam Soeparno Department of Economic Development Department of Economic Development Universitas Sumatera Utara Universitas Sumatera Utara Medan, Indonesia Medan, Indonesia [email protected] [email protected] Inggrita Gusti Sari Nasution Department of Economic Development Universitas Sumatera Utara Medan, Indonesia [email protected] Abstract–Economic development is inseparated various problems such as economic problems, social from the increasing needs of society in every conflict, and legal awareness. aspects such as consumption and other needs. This One crime occurred within 1 minute 32 seconds. condition triggered by various problems such as Meanwhile, counted as many as 140 people out of economic problems, social conflict, and legal 100,000 people at risk of crime [1]. The increasing awareness. Therefore, this study conducted for of criminal acts is based on reported crimes, but the analyzing social economic factors such as the criminal acts will be greater if including with the not percentage of people who did not finish reported crimes. elementary school, Gini ratio, income and The North Sumatera is one of the provinces in unemployment to criminal acts in North Indonesia with the high criminal acts, where Sumatera. The technique of data processing used according to data from BPS that North Sumatera in panel data regression model with The Hausman 2015 was the third position with the criminal acts test to choose the best model within FEM or REM. 35,248 a year. The Metro Jaya Region (Jabodetabek The research area is all regencies/cities in North and surrounding areas) as the top ranking which Sumatera. As the result of the study is the occurred 44,461 criminal acts and East Java was in percentage of people who did not finish the second place with 35,437. elementary school has a positive and insignificant In North Sumatera, the criminal acts are impact to the criminal acts. This variable has the dominated by the theft of motorbike with 5,543 cases smallest coefficient value compared to the other in 2015. Meanwhile, the second case is narcotics with independent variables. Gini ratio has a positive 4,249 cases in 2015. and significant impact to the criminal acts. This The criminal acts of Medan in 2017 occupies variable has the highest coefficient value the rank 16th from 26 cities in Southeast Asia with compared to the other independent variables. the total value of 46.77. Meanwhile, from four cities Income has a negative and significant impact to in Indonesia, Medan is in the second position after the criminal acts. Unemployment Rate has a Jakarta 52.96, Yogyakarta 43.17 and Bali 42.55. positive significant impact to the criminal acts. From 26 cities in Southeast Asia, Kuala Lumpur is the city with the highest criminal acts with a value of Keywords – Criminal; Education; Inequality; 68.64, while the city with the lowest criminal acts is Income; Unemployment Singapore with a value of 16.64 [2]. The high criminal acts in the North Sumatera is I. INTRODUCTION inseparable from socio-economic conditions of the society. The level of education affects to the criminal Economy development is inseparated from the acts [3]. The higher of people education, the higher of increasing needs of society in every aspects including people morality which is the basic of human capital the most important thing such as consumption and to prevent the increase of the criminal acts. other needs. The more urgent needs will encourage Meanwhile, economy deceleration caused the real people to take any actions with no exception even sector getting decrease so the people’s income will be including criminal acts. This condition is triggered by Copyright © 2018, the Authors. Published by Atlantis Press. 42 This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). Advances in Economics, Business and Management Research (AEBMR), volume 46 to reduce, those things contribute to increasing the There is an interrelationship between the criminal acts. general factors of social, political-economic and cultural building with the number of crimes in the A. Problems environment both in small or large environments, 1. Does the percentage of people who did not finish elementary school affect the number including [6]: of criminal acts in North Sumatera? 1. Economic factors such as the system, price 2. Does Gini Ratio affect the number of changes, income, unemployment, and criminal acts in North Sumatera? economic inequality 3. Does income per capita affect the number of 2. Social factors include education, health, criminal acts in North Sumatera? religion, and poverty. 4. Does the unemployment rates affect the 3. Mental factors such as the strength of number of criminal acts in North Sumatera? religion and influence of reading even from B. Research Purposes media. 1. To know if there is any effect of the 4. Physic factors include climate conditions percentage of people who did not finish and others elementary school on criminal acts in North 5. Individual factors such as age, race, an Sumatera. influence of alcohol or even the impact of 2. To know if there is any effect of Gini Ratio war. on criminal acts in North Sumatera. 3. To know if there is any effect of income per capita on criminal acts in North Sumatera. B. Education 4. To know if there is any effect of Three factors that explain the possibility of unemployment Rates on criminal acts in education affect the criminal participation in crime. North Sumatera. The factors are the effect of income, the availability of time, and the patience or risk aversion [7]. II. THEORY AND HYPOTHESIS Meanwhile, one of the criminal act is influenced by education factor, because education is an important A. Criminality factor for determining the quality of human resource Criminality can be interpreted as a crime [4]. [8]. Education is a resource that provides the greatest Criminality can also be seen from several aspects i.e. advantage over other production factors because to 1. From the juridical aspect, criminality is if find a job requires skill. If the human resources are someone violates the rules or criminal law not educated, then they won’t be able to enter the and he is punished by the court and company to work [9]. sentenced. However, if a person has not Education will give moral influence to the been punished, then the person is not participation of people in criminal activity. Where is considered a criminal. someone who has a higher education will keep his 2. From the social aspect, criminality is if moral not to commit criminal acts that could damage someone fails to adjust or do deviates thing his reputation and good name, while morally, higher consciously/ unconsciously from the norms education will better guarantee someone to be able to prevailing in society so that its actions can work and earn a better income to provide comfort and not be justified by the community. avoid the desire to commit crimes. But this would be 3. From the economy aspect, criminality is if the opposite if someone doesn’t have a high someone/more considered to be detrimental education, where he will look for ways to meet the to others by imposing his economic interests needs of his life that can not be met with income or on the surrounding community so that it is work earned with low level of education, so he will perceived an an obstacle to the happiness of be tempted to commit crimes to fulfil his needs of others. life. Criminality is any actions or acts that harm both economically and psychologically in violation of the C. Inequality of Economic laws prevailing in Indonesia as well as social and initiation of rational criminal model activities religious norms. Can be concluded that criminality is argues that the individual decisions to be criminals or all kind of unlawful acts and disobey social norms so not based on benefit-cost analysis [10]. Explicitly, the that the society opposes it [5]. individual’s decision to commit crime-based on his desire to meet the targeted consumption level. If 43 Advances in Economics, Business and Management Research (AEBMR), volume 46 someone can’t reach the level of consumption religious norms [5]. There is an interrelationship through legal way, there is a possibility to do so between the social factors and economic factors with through criminal activity. The relative income of the the number of crimes in the environment both in rich when compared to the poor will make the small or large environments [6]. distribution of income unequal and will increase the The level of criminality can be influenced by crime rate. economic variables, demographics, or other variables Inequality shown through Gini ratio will affect either partially or simultaneously [3]. The crime rate crime in many ways. The first way occurs as a result is strongly influenced by Population Density, GDP of social jealousy between the poor and the rich so Per Capita, Open Unemployment Rate, School that the poor will try to get what the rich have in Dropout Rate of Elementary (SD/MI) and Junior some of forbidden ways that lead to the emergence of High (SMP/Mts), Percentage of Population with criminal acts. Alternatively, there may be a difference divorce status and Poor People, Gini Ratio [15]. in expected income earned by the excessive gap Education plays an important role in between the income of the poor and the rich so that suppressing the number of criminals which the poor will seek to achieve their expectation investigate crime rates based on level of education, through criminal acts.
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